Hyundai Marine & Fire Insurance Co Ltd (HMFI), South Korea’s No 2 non-life insurer, has signed a stock purchase agreement to buy a 25 per cent stake in Vietnamese non-life insurer VietinBank Insurance Joint Stock Corp (VBI).

The deal is equivalent to 16.6 million shares of VBI, a subsidiary of Viet Nam’s leading commercial lender VietinBank. After the sale, VBI will raise its capital to VND666.7 billion (US$28.5 million).

With this purchase contract, VBI will be supported with capital to enhance its financial capacity and competitiveness, producing impressive results in all of its operational segments.

“HMFI’s purchase of VBI’s shares, becoming its second largest shareholder, has affirmed VBI’s reputation in the field of non-life insurance and the attraction of the company to investors, especially foreign strategic investors operating in the same sector. In the future, VBI commits to continue improving product quality, enhancing customer services and applying modern technology in accordance with the trend of insurance development in Viet Nam,” said General Director of VBI Le Tuan Dung at the signing ceremony held in Ha Noi on Friday.

Cheol Young Lee, a representative from HMFI said: “With more than 60 years of experience in the non-life insurance sector and a global network, HMFI wishes to co-operate with VBI and contribute practical and valuable experience to VBI’s development.”

HMFI will focus on supporting VBI in the expansion of its customer network, especially Korean customers in Viet Nam, boosting new insurance products suitable for the Vietnamese market, applying new technology in risk management and human resource training, Lee said.

At the signing ceremony, HMFI also signed a strategic partnership agreement with Vietinbank.

According to the bank, with the strength as one of the four largest commercial banks in terms of assets and network in Viet Nam, VietinBank, VBI’s largest shareholder, commits to providing maximum support to VBI in using existing facilities of VietinBank, developing brand and customer services, as well as the distribution of VBI’s insurance products within Vietinbank’s network of 155 branches and 958 transaction offices across provinces and cities nationwide. — VNS